Economic schools

Classical

1. Key Players: Adam Smith, John B. Say, David Ricardo, Alfred Marshall
2. Supply creates its own demand (whatever output is produced will be demanded
3. Savings are leakages
4. Investments are injections
5. Aggregate Supply determines output
6. "Invisible Hand" - Where market functions by itself, no government intervention (laissez-faire)
7. Savings increase with the interest rate
8. Aggregate Supply = Aggregate Demand at full employment equilibrium
9. In the long-run, the economy will balance at full employment
10. The economy is always close to or at full employment
11. "Trickle-Down Effect" - Help the rich first, and the poor will benefit later. Much later.
12. Prices and wages are flexible downward

Keynesian

• Savers do not equal investors
• Key Player: John Maynard Keynes 
• Competition is flawed, Aggregate Demand is key, not Aggregate Supply
• Aggregate Demand determines output, demand creates its own supply
• Savers and investors save and invest for different reasons
• Savings are inverse to interest rates
• Leaks cause constant recessions
• Savings cause recessions
• Ratchet effects and stick wages block Say's Law
• Prices and wages are inflexible downward
• There is no mechanism capable of guaranteeing full employment
• In the long run, we're dead
• Economy is not close to or at full employment
• Some government intervention is needed
• Stabilizers
• Use expansionary/contractionary policy
• Fiscal policy

Monetary

1. Key Players: Alan Greenspan, Ben Bernanke
2. Fine-tuning is needed
3. Congress can't time the policy options
4. Voters won't allow contractionary options
5. Uses tight money and easy money
6. Change required reserves if needed
7. Buy and sell bonds on the open market
8. Change interest rates for discount rate and federal fund rate